Business, international

Astra and Merck agree to revamp U.S. affiliate

Article Abstract:

Merck & Co., a US pharmaceutical giant, has signed an agreement with Astra AB, a Swedish drug manufacturer, to reorganize Astra-Merck Inc., the US marketing affiliate they jointly own. Under the reorganization plan, Astra-Merck will be restructured into a limited partnership from its present setup as a corporation. The agreement also calls for Astra to manage the unit as general partner and allows Astra to consolidate another wholly-owned sales unit into the partnership. However, Astra is expected to spend at least $4.4 billion to buyback US rights of most of its products starting 2008.

Comment:

Agrees w/ Merck & Co to reorganize Astra-Merck Inc, the US marketing affiliate they jointly own

Vanguard and Skyepharma sign key licensing deals

Article Abstract:

Vanguard Medica Group PLC, a manufacturer of pharmaceutical preparations headquartered in Guildford, UK, has signed an exclusive licensing agreement with Elan Corp. involving the drug company's anti-migraine formulation, called frovatriptan. Under the terms of the transaction, Elan will obtain the exclusive right to market the drug to the US. Elan has also acquired a 3% interest in the drug firm for an undisclosed amount. Skyepharma PLC, a developer of pharmaceutical products, has forged an agreement with Sepracor Inc. to create and market asthma treatment preparations.

Pretax profit increases 7% at SmithKline Beecham

Article Abstract:

SmithKline Beecham PLC, an Anglo-American pharmaceuticals producer, records a 7% increase in third-quarter pretax profit of 1998 to 403 million pounds sterling from 376 million pound sterling in the year-earlier period. The increase in the 3rd-quarter profit was prompted by the bouyant sales of Seroxat, an anti-depressant drug with the brand name Paxil, and Augmentin, an antibiotic. Reductions in administrative and overhead costs plus some unexpected savings in the research and development area also contributed to the increase in pretax earnings.

Comment:

Records a 7% increase in third-quarter pretax profit of 1998 to GBP 403 mil from GBP 376 mil in the year-earlier period